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Insurance guides : Allianz Advises Brokers on Government Energy Scheme

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Allianz Engineering is reminding brokers of the looming deadline for businesses to sign up to a government-backed climate change and energy-saving scheme. The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, administered across the UK by the Environment Agency, began on April 1 2009 and has a September 30 sign-up deadline.

The mandatory scheme aims to reduce the carbon emissions of large private and public sector organisations, as well as saving the participants approximately £1 billion per year in reduced energy expenditure.

4,000 businesses are expected to be eligible for the scheme but currently less than half that number have registered, which could leave them facing fines of up to £5,000 and an extra £500 for each subsequent working day they fail to register.

Participants, who include Allianz as one of the first insurers to sign up, are identified by their 2008 electricity supplies, meaning businesses that have an annual electricity bill of around £500,000 will need to monitor their energy consumption and purchase allowances. The more CO2 an organisation emits, the more allowances it has to purchase, providing a direct incentive for these organisations to reduce their emissions and improve the energy efficiency of their properties.

Steve Ford, special services manager at Allianz Engineering, says: “Figures suggest that awareness of the CRC scheme is low amongst participants which could leave some businesses facing hefty fines. Brokers can add real value to their relationships by making clients aware of their obligations and helping them to avoid costly penalties.”

He adds: “Brokers should also use this opportunity to advise clients on where to find energy assessment services – this will not only help to dramatically reduce their carbon footprint but also their energy costs.”

Source : Allianz News Release